Practice Areas

Export Regulations Updated to Reflect Nuclear Suppliers Group Changes

Thursday, August 07, 2014

Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Aug. 7, makes the following changes to the Export Administration Regulations to reflect developments within the Nuclear Suppliers Group.

- amends certain entries in categories 1 (special materials and related equipment), 2 (materials processing), 3 (electronics) and 6 (sensors and lasers) of the Commerce Control List to reflect changes in the annex to the NSG “Guidelines for the Transfer of Nuclear-Related Dual-Use Equipment, Materials, Software and Related Technology” based on understandings reached at the 2005, 2012 and 2013 NSG plenary meetings and a 2009 intersessional decision

- amends the export licensing policies in the EAR that apply to items that require a license for nuclear nonproliferation reasons, or as a result of certain nuclear end-users or end-uses, by adding an additional factor that must be considered by BIS when it reviews license applications involving such items, end-users and/or end-uses

- reflects the status of Croatia, Estonia, Iceland, Lithuania, Malta, Mexico and Serbia as participating countries in the NSG by (a) adding these countries to the list of participating countries in the definition of “Nuclear Suppliers Group” and to Country Group A:4 (NSG countries) and (b) removing the license requirements for exports and reexports to these countries of certain items controlled for nuclear nonproliferation reasons

The NSG is a multilateral export control forum of 48 participating countries that share a commitment to prevent nuclear proliferation and the development of nuclear-related weapons of mass destruction. In furtherance of that commitment, these countries have agreed to impose export controls on dual-use items that could be used for nuclear proliferation activities. The NSG Guidelines and the annex thereto are designed to ensure that nuclear trade for peaceful purposes does not contribute to the proliferation of nuclear weapons or related proliferation activities.